Korea Zinc's Nickel Sulfate Technology Gains Official Recognition as Strategic

Korea Zinc's Nickel Sulfate Technology Gains National Recognition

In a significant development announced on January 17, 2025, Korea Zinc, a leading player in the metals sector, has seen its nickel sulfate manufacturing technology officially designated as a "national strategic technology" by the South Korean government. This recognition comes as part of a broader initiative to expand the scope of national strategic technologies, which are identified as crucial for the nation's economic security and industrial competitiveness.

The recent amendment to the Enforcement Decree of the Restriction of Special Taxation Act has allowed the inclusion of technologies associated with the manufacturing and processing of metal compounds for cathodes in the roster of national strategic technologies. Since 2023, Korea Zinc has actively sought this classification for its nickel sulfate manufacturing technology, primarily utilized in the production of secondary batteries.

Government-backed benefits will now be accessible to Korea Zinc, aimed at enhancing the technological competitiveness and overall industrial significance of the country’s strategic sectors. This designation signifies technologies that hold substantial importance from diplomatic and security perspectives, showcasing Korea Zinc's pivotal role in future innovations and industries.

The technology itself is proprietary to Korea Zinc and is dedicated to the production of metal chemicals that are essential to cathodes, a central component in secondary batteries. This designation is particularly noteworthy given the ongoing conversations surrounding the South Korean battery industry’s vulnerability and reliance on imports, specifically from China. By bolstering domestic production, Korea Zinc’s advancements are poised to fortify the supply chain for secondary batteries within South Korea.

The absence of smelting facilities for critical battery minerals has long been a concern among domestic manufacturers. In light of this acknowledgment, industry leaders have called upon the government to provide strategic support for establishing smelting facilities tailored for essential minerals like nickel. This initiative is paramount to stimulating the local production capacity, thus minimizing dependence on foreign suppliers.

In November of the previous year, Korea Zinc had already achieved notable milestones by earning the national core technology title and advanced strategic technology status for its high-nickel precursor manufacturing processes. With the recent addition of the national strategic technology designation, Korea Zinc further cements its strategic importance within South Korea's industrial landscape.

Furthermore, this recognition entails additional privileges, including significant tax deductions that will catalyze the construction of the world's only comprehensive nickel refinery. This facility is set to become a fundamental hub for nickel sulfate production. Korea Zinc anticipates that the tax benefits associated with being recognized as a national strategic technology will apply to income and corporate taxes starting in 2026, coinciding with the full operational launch of this mega-infrastructure project, which entails an investment exceeding KRW 500 billion.

The expected financial relief is projected at approximately KRW 80 to 90 billion, underscoring the favorable economic implications this designation brings to Korea Zinc and ultimately to South Korea's ambition of reducing its dependency on external markets for essential battery components.

According to a spokesperson from Korea Zinc, despite navigating challenges, including a recent merger and acquisition attempt by MBK and Young Poong, the company's leadership remains steadfast. Chairman Yun B. Choi and the dedicated workforce strive to uphold Korea Zinc's esteemed position globally, continuing to innovate and lead within the competitive landscape of the mining and metallurgical industries.